Net commission income QoQ: EURm 388 500 379 371 366 � Net commissions up 4% 61 353 47 50 40 44 400 � AuM up 5% to EUR 107bn 95 88 86 87 88 strong sales – 28 35 20 38 300 24 strengthening of equity 194 – 195 191 189 markets 179 200 � Payment commissions improved slightly 100 120 114 � Brokerage increased EUR 8m 108 104 101 0 -76 -80 -85 -84 -88 YoY: -100 � Down 4% Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 reflecting lower brokerage – Asset management Payments & deposits income following lower market Brokerage Lending volumes Other Expenses 26
Trading EURm 180 � Decreased somewhat reflecting 160 lower market activity 157 155 140 – still at a high level 120 130 130 127 � Leading Nordic provider of 100 derivatives and debt capital 80 market services 60 � High quality earnings 40 – customer driven revenue 20 stream 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 27
Total income EURm 1500 � Maintained income level 1,463 1,403 1200 � Q3 non-recurring items: – Hex shares, EUR 27m 900 – Inkassosentralen, EUR 8m 600 � Q2 non-recurring items: 300 – Huoneistokeskus, EUR 43m – Nordisk renting, EUR 32m 0 Q2/03 Q3/03 28
Income statement summary EURm Q3/03 Q2/03 Change % Income 1,403 1,463 -4 Expenses -881 -902 -2 Loan losses -89 -92 Equity method 10 19 Profit before inv. earnings and insurance 443 488 -9 Investment earnings, banking 27 81 Operating profit, life insurance 40 50 Operating profit, general insurance - - Goodwill depreciation -40 -40 Operating profit 470 579 -19 29
Expenses EURm 993 1000 925 448 917 QoQ: 902 881 404 397 363 350 � Continued strict cost 800 management cost reduction quarter by 600 – quarter 545 539 531 521 520 � Total costs down 2% 400 � Seasonally lower activity 200 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Personnel Other 30
Income statement summary EURm Jan-Sep Jan-Sep Change Full year 2003 2002 % 2002 Income 4,240 4,213 1 5,670 Expenses -2,700 -2,752 -2 -3,745 Loan losses -279 -185 -261 Equity method 43 36 52 Profit before inv. earnings and insurance 1,304 1,312 -1 1,716 Investment earnings, banking 137 81 122 Operating profit, life insurance 109 -42 2 Operating profit, general insurance - -122 -122 Goodwill depreciation -121 -128 -171 Operating profit 1,429 1,101 30 1,547 31
Expenses – underlying development YoY: EURm � Ongoing initiatives showing 3000 2,752 2,700 effect 2,715 2500 2,586 � Reported expenses down EUR 52m, or 2% 2000 � Underlying expenses approx. 1500 EUR 130m, or 4.8% lower – new business, Poland 1000 – higher restructuring costs 500 – higher variable salaries – release of previous restructuring 0 reserve Jan-Sep 2002 Jan-Sep 2003 – f/x effects � Also absorbed inflation and organic growth 32
Development of FTEs 40000 FTEs Q3/03 Q4/02 35000 Retail 18,771 20,300* 34,271 33,879 32,949 30000 32,227 CIB 2,172 2,444 25000 AM & Life 1,818 1,866 20000 15000 GPT** 7,737 7,710 10000 Other 1,729 1,951 5000 Total 32,227 34,271 0 Change -6% Q4/02 Q1/03 Q2/03 Q3/03 *Of which approx. 500 in Huoneistokeskus End of period **Increased in 2003 by 480 FTEs from Retail and CIB 33 due to organisational changes
Loan losses EURm � Loan losses at manageable 300 level 246 236 221 219 – 0.24% of total loans and 181 200 guarantees annualised in Q3 � Concentrated to Norwegian 98 92 89 76 retail portfolio 100 66 � Vast majority within fish 0 farming � Exposure to fisheries industry -100 EUR 2.2bn -115 -132 -138 -143 – approx. 44% related to fish -154 -200 farming Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 � Pan Fish shares valued at Gross Reversals Net zero 34
Investment earnings, banking EURm QoQ: 100 � Interest rates rose globally 90 80 � Loss on fixed-income portfolio 81 70 � Gain on equities 60 50 YoY: 40 41 39 � Increased EUR 56m 30 29 27 20 � Position taking benefited from 10 reduced interest rates 0 particularly in Q2 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 35
Operating profit, Life Insurance EURm 60 � Lower volatility 50 50 � Gradual implementation of 40 44 changed business model 40 30 � Investment return decreased 20 in Q3 19 10 0 -13 -10 -20 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 36
Income statement summary EURm Jan-Sep Jan-Sep Change Full year 2003 2002 % 2002 Income 4,240 4,213 1 5,670 Expenses -2,700 -2,752 -2 -3,745 Loan losses -279 -185 -261 Equity method 43 36 52 Profit before inv. earnings and insurance 1,304 1,312 -1 1,716 Investment earnings, banking 137 81 122 Operating profit, life insurance 109 -42 2 Operating profit, general insurance - -122 -122 Goodwill depreciation -121 -128 -171 Operating profit 1,429 1,101 30 1,547 37
Net profit EURm 1500 YoY: � Increased by 128% 1200 1,288 � Deferred tax asset of EUR 300m included in Q3/03 900 � Allocation to pension fund in 600 2002 (EUR 272m) 564 300 0 Jan-Sep 2002 Jan-Sep 2003 38
Key figures Earnings per share Return on equity (excl. goodwill) EUR % 30 0.25 25 0.20 20 0.15 15 0.10 10 0.05 5 0.00 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 EPS adjusted to standard tax, Q3 EUR 0.11 RoE adjusted to standard tax, Q3 14.0% EPS adjusted to standard tax, ytd EUR 0.33 RoE adjusted to standard tax, ytd 14.8% 39
Q EUR 40 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Earnings per share – 12 months rolling 1 / 0 2 0 0 0 Q 2 / 2 0 0 0 Q 3 / 2 0 0 0 Q 4 / 2 0 0 0 Q 1 / 2 0 0 1 Q 2 / 2 0 0 1 Q 3 / 2 0 0 1 Q 4 / 2 0 0 1 Q 1 / 2 0 0 2 Q 2 / 2 0 0 2 Q 3 / 2 0 0 2 Q 4 / 2 0 0 2 Q 1 / 2 0 0 3 Q 2 / 2 0 0 3 Q 3 / 2 0 0 3
Balance sheet - key items Change, 12 Q3/03 Q4/02 Q3/02 EURbn months % Lending 149 146 147 1 Deposits 93 94 93 0 Shareholders’ equity 13 12 12 9 Total assets 261 250 252 4 Risk-weighted assets 135 135 137 -1 End of period 41
Lending and deposits Lending Deposits EURbn EURbn 160 100 95 140 149 94 93 93 147 146 147 147 91 80 120 100 60 80 40 60 40 20 20 0 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 End of period 42
Real estate holdings reduced � Sales process progressing according to plan � Book value of approx. EUR 1.0bn to be divested � Properties in Denmark with a book value of approx. EUR 0.4 sold in H1 2003 � Nordisk Renting sold in Q2 43
Capital position – strong Tier 1 ratio % � AGM authorisation to repurchase 10 9 10% of outstanding shares 8 � Board decision to buy back shares 7 7.5 7.1 up to 5% of outstanding shares 6 5 � Nordea will implement IAS19 4 (pensions) from 2004 3 – non-recurring reduction of equity of 2 approx. EUR 250m 1 � New Basel Capital Accord (Basel II) 0 Q4/02 Q3/03 – positive effect expected on required regulatory capital End of period 44
Results by business area EURm 450 400 403 381 350 300 250 200 150 135 100 94 91 50 42 48 52 43 35 0 -50 -85 -128 -100 -150 Retail CIB Asset Mgmt* Life* Group Other Treasury Q2/03 Q3/03 *Product result for Asset Management and Life 45
Retail Banking operating profit EURm � Strong sales 500 450 � Continued growth in household 400 mortgages 415 403 381 350 � Sale of Inkassosentralen 347 341 300 � Loan losses in Retail Banking 250 Norway 200 150 100 Key ratios 50 Q3/03 Q2/03 C/I ratio, % 56 57 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 RoE, % 24 23 46
Retail Banking, lending and deposit margins Quarterly averages % 2.5 � Stable lending margins 2.3 2.1 � Overall deposit margins 1.9 relatively stable 1.7 � Falling short-term rates 1.5 – compensated by hedges 1.3 1.1 0.9 0.7 0.5 2 2 2 2 3 3 3 0 0 0 0 0 0 0 / / / / / / / 1 2 3 4 1 2 3 Q Q Q Q Q Q Q Lending to corporates Lending to personal customers Deposits from corporates Deposits from personal customers 47
CIB operating profit EURm 150 � Markets income reduced but still at good level 138 135 – reflected in FID income 120 123 � Custody Services 109 90 – pressure on prices 94 � Seasonal decline in customer demand 60 � Nii down following lower volumes 30 Key ratios Q3/03 Q2/03 0 C/I ratio, % 56 52 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 RoE, % 13 19 48
Asset Management product result EURm 50 � Product result up 14% 48 45 � Net inflow of EUR 2.4bn 40 42 – 9% inflow annualised 38 35 35 – ytd inflow EUR 6.7bn 30 31 � AuM up 5% to EUR 107bn 25 20 15 10 Key ratios Q3/03 Q2/03 5 C/I ratio, % 60 63 0 AuM, EURbn 107 102 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 49
Life Insurance, product result EURm � Product result down 17%, still 60 high level 50 52 � Lower volatility 48 40 43 � Implementation of changed 30 business model 20 � Investment return decreased in 22 Q3 10 0 Key ratios Q3/03 Q2/03 -11 -10 Inv return, % 0.4 3.3 -20 Financial 4.6 4.8 buffers*, % Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 50 * Financial buffers in % of provisions
Life - solvency situation End of Q3/03 Required Actual Solvency Solvency in % EURm solvency solvency buffer of requirement Denmark 427 509 82 119 Finland 213 506 293 237 Norway 120 196 76 164 Sweden 67 119 52 178 51
Life – financial buffers* EURm % of total provisions Q3/03 Q2/03 Q3/03 Q2/03 Denmark 595 588 6.2 6.2 Finland 153 175 3.4 3.9 Norway 39 41 1.5 1.6 Sweden 54 65 3.4 4.3 Total 842 869 4.6 4.8 52 * Financial buffers are defined in accordance with local regulations and practices.
Group Treasury operating profit EURm 100 QoQ: 90 91 � Financial markets focused on 80 economic recovery 70 60 � Increased medium- and long-term 58 50 interest rates 40 – loss on bond portfolio 30 35 31 � Gain on equities 27 20 10 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 53
Other column Q3/03 Q2/03 QoQ: � OM/HEX shares EUR 27m in Q3 Income -24 -16 � Nordisk Renting EUR 32m in Q2 Expenses -83 -71 Loan losses 0 5 General: � Funding cost for acquisition of Equity method 10 9 Nordea Bank Norway Investment earnings 0 6 � Results from real estate holdings (non-owner occupied) Operating profit, Life 0 13 � Expenses in Group functions not defined as service offered to Goodwill -31 -31 business areas � Depreciation of goodwill related Operating profit -128 -85 to the creation of Nordea 54
Outlook 2003 � General economic outlook slightly improved � Scope for revenue growth in 2004 – expectations of growth globally as well as in the Nordic economies � Sharp attention on cost control will be maintained � Expenses expected to be well within 2003 cost target � Target for average loan losses over a business cycle, maximum 0.40% – still some caution regarding the fish farming portfolio � Loan losses in Q4 not expected to exceed average quarterly level in 2003 55
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Loan portfolio by customer group End of Q3/03 EUR 148.7bn Public sector 2% Personal customers 43% Companies 55% 57
Lending to personal customers End of Q3/03 EUR 63.5bn � Continued strong growth in Other loans mortgage lending 24% � Other loans comprise consumer credits – investment credits – car financing – overdraft facilities – credit cards – Housing loans 76% 58
Lending to companies by industry End of Q3/03 EUR 82.1 bn Shipping & Offshore 5% Construction Agriculture & 3% Fishing Real estate 5% 27% Transport, communication 5% Other companies 6% Renting, consulting and other services 8% Manufacturing Commerce and 16% services 11% Finance 59 14%
Loan portfolio EURbn Q3/03 Q2/03 Q1/03 Q4/02 Q3/02 Personal customers 63.5 60.2 58.6 57.9 56 Real estate 22.0 22.0 22.6 22.4 23 Construction 2.5 2.8 2.9 3.1 3 Transport, communication 4.6 3.8 3.5 3.5 3 Trade and services 9.1 9.1 8.9 8.3 9 Manufacturing 13.2 12.5 13.5 13.9 15 Finance 11.2 12.2 10.7 9.1 9 Renting, Consulting and other services 6.1 7.0 8.7 8.2 9 Other companies/public sector 8.3 8.6 8.5 10.3 11 Agriculture & Fishing 4.3 4.3 4.3 4.3 4 Shipping & Offshore 3.9 4.5 4.7 4.6 5 Total 148.7 147.0 147.0 145.7 147 End of period 60
Lending by geographical area End of Q3/03 Latin America EUR 148.7bn Asia 0.6% Non-OECD 0.5% USA 0.7% 1.2% Other OECD Nordic countries 0.5% 91.1% Other 8.9% The Baltic states and Poland 0.9% Other EU countries 4.5% Nordic countries, EUR 135.4bn � Denmark 37.5 � Finland 30.9 � Norway 22.7 � Sweden 44.3 61
Transfer risk exposure EURm . End of Q3/03 Asia 627 Latin America 270 -of which China 262 -of which Brazil 144 South Korea 110 Mexico 48 Indonesia 26 Chile 19 Panama 35 Argentina 3 Middle East 326 -of which Iran 112 Turkey 69 62
Nordea fisheries financing End of Q3/03 Total exposure approx. EUR 2.2 bn Fish processing/ � Total outstanding EUR 1.9bn export 21% � Mainly Norwegian exposure Fish farming � Fish farming the troubled area 44% � Increased salmon prices in Q3 Fishing vessels 35% 63
Nordea shipping portfolio Distribution by type of vessel End of Q3/03 Total exposure approx. EUR 5.9bn Reefers Combined � Outstanding, EUR 5.1bn 4% vessels Other dry cargo 1% 4% Misc.loans � Well diversified portfolio by 12% Gas tankers type of vessel Crude tankers 7% 12% � Focus on large industrial Pure car carries 7% players � Exposure split approx Cruise Bulkers 55% / 45% Nordic / Int’l. 8% 10% Chemical tankers Liners 8% 10% Feries Product tankers 8% 9% 64
Nordea real estate financing portfolio End of Q3/03 Total exposure approx. EUR 22.0bn � Largest industry exposure Denmark � Relatively large and financially 8.1% strong companies Norway Sweden 19.4% 50.2% � High level of collateral coverage � Lending to residential real estate companies approx 50% Finland 22.3% 65
Nordea telecom financing portfolio End of Q3/03 Total exposure approx. EUR 4.8 bn � Total outstanding EUR 2.8bn Manufactures 28% � Majority of exposure related to – major Nordic equipment manufacturers – major Nordic telecom operators � ECA or cash cover for 9% of exposure Operators 72% 66
Impaired loans EURm. End of period Q3/03 Q2/03 Q1/03 Q4/02 Q3/02 Impaired loans, gross 2,916 2,851 2,892 3,260 3,136 Provisions -2,072 -2,015 -2,087 -2,153 -2,290 Of which: Specific provisions -1,624 -1,571 -1,630 -1,698 -1,834 Appraised by category -64 -65 -64 -64 -79 General provisions -384 -379 -393 -391 -377 Impaired loans, net 844 836 805 1,107 846 Transfer risk reserve 105 109 124 130 138 Provisions/impaired loans, gross 71 71 72 66 73 (%) Impaired loans,net/lending (%) 0.57 0.57 0.55 0.76 0.57 67
Impaired loans EURm. End of Q3/03 Gross Provisons Net Personal customers 583 373 210 Real estate 213 153 60 Construction 88 76 12 179 Transport, communication 233 54 Trade and services 257 191 66 Manufacturing 295 227 68 Finance 173 142 31 Renting, Consulting and other services 214 178 36 Other companies 515 282 233 Public sector 5 1 4 Agriculture & Fishing 239 194 45 Shipping & Offshore 101 76 25 Total 2,916 2,072 844 68
Loan losses EURm 300 � Loan losses at manageable 246 236 level 221 219 181 200 – 0.24% of total loans and guarantees annualised in Q3 98 92 89 � Loan losses concentrated to 76 100 66 Norwegian retail portfolio � Vast majority within fish 0 farming -100 � Fish farming represents 0.6% -115 of loan book -132 -138 -143 -154 -200 � Pan Fish shares valued at Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 zero Gross Reversals Net 69
Comments on certain industries Real estate � Vacancy rates increasing from very low levels in commercial real estate � Rent levels down from peak but still higher than original levels 3-5 years ago � Low interest rates help secure cash flow and secondary market values � New construction volumes adjusted to decreased demand � Large foreign interest in Nordic property market � Residential part of portfolio performing strongly 70
Comments on certain industries Shipping and Offshore industry � Pick up in economy leading to increased rates � Bulk market particularly strong � Tanker market strong but volatile � Crusing market recovering from global uncertainties � Offshore industry suffering from uncertainty of oil prices � Nordea´s exposure well diversified with modern ships and globally competitive companies � Restructuring and consolidation of industry continue 71
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Economic capital (EC) � EC is the capital required by Nordea to cover unexpected losses � 6 different risk categories are incorporated � The measurement period is one year � The confidence level is 99.97% � The economic capital may change over time due to: – the composition of risk exposures – changes in parameters � Economic capital is used for – risk management – performance measurement – capital allocation 73
Economic capital EURbn 12 11 � No major changes in EC 10 since last quarter 10.2 9.9 9 9.5 9.1 9.0 � Ongoing sale of real estate 8 holdings 7 6 � EC reduced by EUR 1.2bn 5 since Q4/02 4 3 2 1 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 74
Economic capital per business area End of Q3/03 EUR 9.0bn Other 10% Treasury 6% Asset Mgmt & Life 11% Retail 51% CIB 22% 75
Distribution of economic capital - by risk category End of Q3/03 Life risk Real estate risk 1% 5% Operational risk 8% Business risk 10% Credit risk Market risk 60% 16% 76
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Mission: ‘Making it possible’ By providing a broad set of easily accessible and competitive financial services and solutions, Nordea helps customers where we operate to reach their objectives . Vision We will be valued as the leading financial services group in the Nordic and Baltic financial markets with a substantial growth potential. We will be in the top league or show superior profitable growth in every market and product area in which we choose to compete. We will have the leading multichannel distribution with a top world ranking in e-based financial services and solutions. 78
Strategic themes Sustainable growth of economic profit Ensure operational Ensure capital Ensure stable and excellence, strict cost profitable growth of efficiency and high management and income credit portfolio quality reduced complexity Attract, develop and retain highly motivated, competent and performance oriented employees 79
Top priorities firmly anchored throughout the Group Retail Banking Corporate and Asset Management Other / Group Institutional Banking & Life Top priorities Reduce volatility and • Increase share of wallet for • Enhance position among • Capture share of expected ensure growth of personal customers in a large corporates in Sweden growth in the Long-Term income multi-channel strategy • Focus on fin. institutions Savings and Life area • Add value for small and • Gain market share in debt • Reduce volatility in Life medium sized corporates capital markets • Reduce IT-development • Benchmark processes and • Streamline international • Centralise equity and fixed Speed-up integration costs and projects structures income processes and unification and activities • Support and procurement • Emphasise Nordic projects • Standardise service improve cost efficiency • Re-focus Nordea at Group level and solutions concepts Securities • Drive e-banking • Streamline support • Shared service centres • Reduce portfolio of functions development projects • Further reduce economic Ensure capital efficiency • Implement economic profit • Limit use of balance sheet • Implement new business capital and non-core and maintain credit on business unit level • Price according to risk model in Life & Pensions assets portfolio quality • Refine credit granting and • Increase proactivity and • Roll-out economic profit- controls more strict monitoring of driven management • Refine credit scoring credit portfolio system to push profitability models 80
Financial targets Key performance indicator Actual Jan-Sep Target 2002 2003 Total shareholder return, peer group # 15 # 5 YTD In the top five of the peer group ranking Return on equity excluding goodwill, % 11.3 18.9 Sustainable RoE>15% from 2004 Costs, EURm 3,745 2,700 Same cost level through 2004 as in 2002 Cost/income ratio, % 64 61 < 55 % from 2005 and with present business mix Loan losses ratio, % 0.19 0.25 < 0.40% of loans and guarantees on average over a business cycle Dividend pay-out ratio,% 76 n.a > 40 % of net profit Tier 1 capital ratio, % 7.1 7.5 > 6.5% Note: Dividend for 2002 EUR 0.23 per share. Dividend for 2001 was EUR 0.23 per share 81
Peer group* by market cap, EURbn 15 October 2003 RBoS BARCLAYS BNP HBoS LLOYDS TSB SOCIETE GENERALE ABN AMRO NORDEA ABBEY NATIONAL DANSKE BANK ALLIED IRISH SHB KBC BANK OF IRELAND COMMERZBANK HYPOVEREINSBANK SWEDBANK SEB SAMPO DnB 0 10 20 30 40 50 60 70 *As defined by Nordea 82
Strong distribution network throughout the Nordic and Baltic Sea region Finland Branch offices 416 Personnel 9,430 Sweden Helsinki Branch offices 262 Stockholm Personnel 8,041 St Petersburg Oslo Norway Tallinn Copenhagen Branch offices 146 Riga Personnel 4,041 Moscow Vilnius Hamburg Denmark Warzaw Branch offices 345 Personnel 9,173 Luxembourg Frankfurt Poland and Baltic Branches/salepoints 71 Personnel 1,542 Countrywide network Total locations 1,240 Branch office or subsidiary Total personnel* 32,227 Office of an associated bank 83 *Full time equivalents
Large customer base with high penetration in e-banking Baltic Total Sea DK FI NO SE Region Banking customers (1,000) Personal customers 1,600 3,000 600 4,200 260 9,700 Corporate customers 80 330 65 460 30 965 Life insurance customers (1,000) 610 305 220 465 60 1,660 Net banking customers (1,000) 510 1,200 270 1,540 40 3,560 84
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Results by business area EURm 450 400 403 381 350 300 250 200 150 135 100 94 91 50 42 48 52 43 35 0 -50 -85 -128 -100 -150 Retail CIB Asset Mgmt* Life* Group Other Treasury Q2/03 Q3/03 *Product result for Asset Management and Life 86
87
Retail Banking operating profit EURm � Strong sales 500 450 � Continued growth in household 400 mortgages 415 403 381 350 � Sale of Inkassosentralen 347 341 300 � Loan losses in Retail Banking 250 Norway 200 150 100 Key ratios 50 Q3/03 Q2/03 C/I ratio, % 56 57 0 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 RoE, % 24 23 88
Retail Banking operating profit by markets Retail DK FI NO SE P&B Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 EURm Net interest income 768 758 202 202 191 193 133 120 228 231 10 10 Non-interest income 357 368 96 89 84 122 50 39 119 108 7 8 Total income 1,125 1,126 298 291 275 315 183 159 347 339 17 18 Total expenses -626 -644 -155 -156 -151 -156 -104 -105 -196 -205 -14 -17 Profit bef. loan loss 499 482 143 135 124 159 79 54 151 134 3 1 Loan losses -89 -94 -13 -12 -3 1 -74 -81 2 -3 -1 3 Operating profit 403 381 130 123 121 160 5 -27 149 126 -1 2 C/I ratio % 56 57 52 54 55 50 57 66 57 61 84 91 RoE % 24 23 28 27 32 45 2 -9 31 27 -1 6 89
Retail Banking lending EURbn 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Q2/03 Q3/03 End of period 90
Retail Banking deposits EURbn 25 20 15 10 5 0 Denmark Finland Norway Sweden Q2/03 Q3/03 End of period 91
Retail Banking deposits EURbn. End of Q3/03 25 9.7 20 4.3 7.1 15 2.7 6.8 6.1 1.2 10 3.9 9.4 5 6.0 6.1 6.1 0 Denmark Finland Norway Sweden Corporate Personal customer - saving accounts 92 Personal customer - current accounts
Retail Banking, volumes and margins Volumes Margins Q3/03 Q2/03 Q3/03 Q2/03 EURbn Lending to corporates 58.3 59.0 1.2% 1.2% Lending to personal customers 61.5 59.2 1.7% 1.6% Total lending 119.8 118.2 1.5% 1.4% Deposits from corporates 28.6 28.5 0.9% 1.0% Deposits from personal customers 41.8 41.3 1.6% 1.6% Total deposits 70.4 69.8 1.3% 1.3% Margins are quarterly averages and exclude Poland and Baltic, volumes end of period 93
Retail Banking, lending and deposit margins Quarterly averages % 2.5 � Stable lending margins 2.3 2.1 � Overall deposit margins 1.9 relatively stable 1.7 � Falling short-term rates 1.5 – compensated by hedges 1.3 1.1 0.9 0.7 0.5 2 2 2 2 3 3 3 0 0 0 0 0 0 0 / / / / / / / 1 2 3 4 1 2 3 Q Q Q Q Q Q Q Lending to corporates Lending to personal customers Deposits from corporates Deposits from personal customers 94
95
Jan-00 96 E-banking customers 1.5 2.5 3.5 Mill. June-00 1 2 3 4 Nov-00 E-banking customers April-01 Sept-01 Feb-02 July-02 Dec-02 May-03 Jan-00 (1,000) 100 150 200 250 300 350 50 June-00 0 Nov-00 Equity trading customers April-01 Sept-01 Feb-02 July-02 Dec-02 May-03
Payments and log-ons E-banking payments E-banking log-ons Mill. Mill. 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Denmark Finland Norway Sweden Denmark Finland Norway Sweden 97
Jan-01 98 10 15 20 25 30 % Penetration on the net 0 5 May-01 Sept-01 Mutual funds penetration rate Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-00 10 20 30 40 50 60 70 80 % 0 May-00 Sept-00 Equity trading penetration rate Jan-01 May-01 Executed trades Sept-01 Jan-02 May-02 02-Sep Jan-03 May-03 Sep-03
J a 10 15 20 25 30 35 40 Mill. 99 n 0 5 - Cards 0 1 M a y - 0 1 S e p t - 0 1 J Card payments a n - 0 2 M a y - 0 2 S e p t - 0 2 J a n - 0 3 M a y - 0 3 S e p - 0 3 J 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Mill. a n - 0 1 M a y - 0 1 Issued debit and credit cards S e p t - 0 1 J a n - 0 2 M a y - 0 2 S e p t - 0 2 M a r - 0 3 J u l - 0 3
Payment transactions, households Payment transactions Mill. 250 � Payment transactions up 2% 240 in Q3 230 � Card payments up 5% in Q3 220 210 � Continued migration from 200 transactions in branches to 190 e-banking 180 170 160 150 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 100
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